Court orders Spa D’Athena owners to pay more than $275,000 in restitution
BISMARCK, N.D. (KFYR) - The Burleigh County District court announced Wednesday that Spa D’Athena owners must pay more than $275,000 in restitution for defrauding customers.
Investigators say the owners, Jill Becker and Brent Voorhees, continued to sell gift cards for future services after they planed to close the business in 2017.
Becker and Voorhees are ordered to pay $275,195 in restitution to customers and $28,660 in civil penalties.
According to a press release, Becker and Voorhees moved to Nevada and filed for bankruptcy, admitting they did so to discharge debts owed to customers for gift cards.
Parrell Grossman, Director of the Attorney General Consumer Protection division said records showed more the $500,000 in gift card debts.
“Unfortunately, because the restitution likely will be discharged in the bankruptcy, it means there is no money for refunds to consumers who purchased the worthless Spa D’Athena gift cards,” said Grossman.
Grossman added most businesses take steps to refunds the gift cards, but because of the owners filing for bankruptcy many customers wont get their money back.
“Their conduct was inexcusable and it was very unfortunate that, despite concentrated efforts to obtain relief for consumers in state court, these defendants avoided their obligations to make refunds by leaving the state and filing bankruptcy in Nevada,” Grossman said.
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